Redweek holding all payments regardless???

[lds337]

I send off a small claims filing to the Orlando Clerk Of Courts today for suit against my renter. I'll let you all know how it goes.

You can sue the renter, but your case will be thrown out of court since Redweek released the renter from the contract. You don't have to look any farther then Clause 1 that you empowered Redweek and they are the sole arbiter. The other clauses that everyone is referencing clause 2 & 12 are reasons why Redweek shouldn't have released the renter from the contract. Those points are moot once Redweek actually releases the renter.

I'm not a lawyer but if you hire someone to act on your behalf the you can't go after the renter when Redweek does arbitrate.
Your case should be against Redweek for Breach of Contract not the renter. IMHO

1. This Rental Agreement ("Agreement") is between the Owner and the Renter for the rental of the unit for the term described above. The Owner has contracted with RedWeek Real Estate, LLC (“RedWeek”), which serves as the processor of the transaction for the two parties and the sole arbiter. While RedWeek has verified key details and provides assistance with the transaction, the Owner is ultimately responsible for the accuracy of the posting, changing the name of the party checking-in, and ensuring the resort provides the correct unit type at check-in.

 

[DanCali]

I also think RedWeek is the party who did you wrong. They conducted an arbitration without allowing you to present your case and in a manner that seems to many of us to contradict the contract between you and the renter. The reason they want the proceedings to occur in Orlando is because RedWeek Real Estate LLC is a Florida Corporation (unlike RedWeek Inc which is based in WA).

 

[marriottdude]

Renter as they are the one on the contract. Breach of contract. My filing fee was $300.

 

[DanCali]

Renter as they are the one on the contract. Breach of contract. My filing fee was $300.

But wouldn't renter just argue that you both agreed to arbitration and the arbitration process ruled in their favor? So how is that breach of contract?

Renter put money in escrow (as required), renter (and you) agreed to arbitrate via RedWeek, and renter went through the arbitration process allowed by the contract. RedWeek ruled in their favor. So can you point to any part of the contract where the renter broke the rules?

I may be off on this but to me it seems that your issue is with the arbitration process, which was handled by Redweek. Redweek chose in interpret "non refundable" as "may be refundable in a pandemic and the renter didn't have travel insurance".

 

[marriottdude]

I agree Redweek could also be pursued, but my sense is the contract is attempting to sort out who bears the risks and burdens of the rental. I think the renter bears the risk of cancellation and as such I though they should be the ones to sue. If this gets the renters to settle, I'll be fine with that.

 

[DanCali]

I agree Redweek could also be pursued, but my sense is the contract is attempting to sort out who bears the risks and burdens of the rental. I think the renter bears the risk of cancellation and as such I though they should be the ones to sue. If this gets the renters to settle, I'll be fine with that.

Good luck - I hope it works out!

 

[rickandcindy23]

I am never using the verify again. I know it saves me some credit card fees, but it's not worth it at all.

 

[marriottdude]

I'll let you know how it plays out.

 

[klpca]

This action ought to get Redweek's attention because the renter is sure to go straight to Redweek to have them deal with it. So in the end, it may be worth it to file.

 

[dioxide45]

If you think about it. If you have a contract with a renter and they dispute the credit card charge and the card company sides with them, your remedy is to sue the renter, not the credit card company. So perhaps the proper path is naming the renter as the defendant.

 

[DanCali]

I'll let you know how it plays out.

Did you need renter's address to file the complaint?

If you think about it. If you have a contract with a renter and they dispute the credit card charge and the card company sides with them, your remedy is to sue the renter, not the credit card company. So perhaps the proper path is naming the renter as the defendant.

That's definitely an interesting way to see it!

 

[marciaheitz]

Very smart.

I would also add that I always tell my renters that "Dates can not be altered or changed, and all sales are FINAL".

I also urge all my renters to "Purchase travel insurance" to cover themselves in case of unforeseen circumstances.




.

The problem I've encountered with insurance is COVID 19 is NOT COVERED in any of them and many other things that you would think were covered aren't covered. My husband has a chronic disease and so I've always paid a lot of money to buy insurance.....then I read in the fine print that if I cancel due to his disease IT'S NOT COVERED! Now if he broke his leg it would be covered or other such accidental injury....but I'm not nearly as concerned about that as I am the chances due to his illness.

 

[hurnik]

The problem I've encountered with insurance is COVID 19 is NOT COVERED in any of them and many other things that you would think were covered aren't covered. My husband has a chronic disease and so I've always paid a lot of money to buy insurance.....then I read in the fine print that if I cancel due to his disease IT'S NOT COVERED! Now if he broke his leg it would be covered or other such accidental injury....but I'm not nearly as concerned about that as I am the chances due to his illness.

Typically, the insurance policies I've found/seen will have a pre-existing condition waiver, IF purchased within 2 weeks of initial trip payment. It will cost a little more (but certainly less than a CFAR policy).

My mother battled colon cancer for 5 years and we always made sure to get pre-existing condition-waiver policies.

 

[TravelAmore]

While this thread is getting a little dated, I heard an excellent podcast on The Journal the other day reviewing and interviewing owners of AirBnB units and how AirBnB responded to renters and owners during the pandemic. The title, "Airbnb Hosts Built Mini-Empires. Now They're Crumbling" released May 7. Words to the wise for owners who rent their units through agencies, tech platforms, or other companies....

 

[ocdb8r]

But wouldn't renter just argue that you both agreed to arbitration and the arbitration process ruled in their favor? So how is that breach of contract?

Certainly the renter could make this argument, but in reality there are multiple problems with the Redweek contract that provide plenty of openings for a court/judge to insert themselves:

1) The contract doesn't include a properly constructed arbitration clause; no where do you actually agree to "arbitration"; there's no clarity on what Redweek is empowered to decide, process for making their decision...etc;

2) In every jurisdiction I am aware of arbitrators must be independent, uninterested parties. Redweek is clearly neither in this case considering their interest in the transaction overall (not only the fees they collected, but also the continued relationship with both the renter and owner). While one could argue their interest could be to NOT cancel the transaction, the fact that they have any interest at all would disqualify them as a valid arbitrator;

3) The contract also contemplates that the sole and exclusive venue for any legal proceedings or disputes relating to the agreement shall be the Circuit Court of the Ninth Judicial Circuit of Florida in Orange County, Florida. That clearly opens the door for a judge to insert themselves and rule on this agreement; and

4) Even where a properly constructed arbitration clause exists in the agreement, a proper process to challenge the clause or the award by an arbitrator is to bring the counterparty to Court so the court can decide if the arbitration was indeed valid. If not, a legal dispute can proceed.

However, I agree that Redweek could be named as an additional defendant given their failure to process payment due to you.

 

[grupp]

I just rented my unit for late June and they wanted to pay with a credit card, so I agreed to use Redweek Payments. I wasn’t even sure if it would rent, so willing to take the risk and see how it goes.

 

[marciaheitz]

The problem I've encountered with insurance is COVID 19 is NOT COVERED in any of them and many other things that you would think were covered aren't covered. My husband has a chronic disease and so I've always paid a lot of money to buy insurance.....then I read in the fine print that if I cancel due to his disease IT'S NOT COVERED! Now if he broke his leg it would be covered or other such accidental injury....but I'm not nearly as concerned about that as I am the chances due to his illness.

I've discovered the very same issue with my husbands chronic illness.....I WANT TO PROTECT MY INVESTMENT BUT THE MAIN REASON IS BECAUSE OF THE CHRONIC ILLNESS.....what the hell! I just made the decision to not protect a vacation next Feb that I've spent over $10,000 on because of this very issue......why pay a very high price for accidental injury insurance?

 

[icydog]

I am never using the verify again. I know it saves me some credit card fees, but it's not worth it at all.

Hi Cindy,
I used it once and will never do that again. I will stick with my old PayPal payment structure. Of course I have nothing to rent out until this blows over.
As an aside, I contacted Redweek and asked them for a favor. I have two resorts up for rent with them. I can rent neither of them until this pandemic clears up. I asked them to save my rental payments to use on a new ad later on, when everything is back to normal (God willing)--- and they agreed!

 

[pacman777]

Hi Cindy,
I used it once and will never do that again. I will stick with my old PayPal payment structure. Of course I have nothing to rent out until this blows over.
As an aside, I contacted Redweek and asked them for a favor. I have two resorts up for rent with them. I can rent neither of them until this pandemic clears up. I asked them to save my rental payments to use on a new ad later on, when everything is back to normal (God willing)--- and they agreed!

Well if they obliged to you then I guess they would owe me $2500 worth of ad fees since that is what they screwed me out of based on some BS arbitration

 

[echino]

Any news from court?

 

[montygz]

Any news from court?

In Florida, the courts are shut down because of COVID except for certain essential procedures.

 

[Ianneyan]

I am never using the verify again. I know it saves me some credit card fees, but it's not worth it at all.

If you don’t use something like redweek verify, what rental contract do you use? Do you have a good one on hand?

 

[marriottdude]

I had pretrial mediation session virtually with Orlando Circuit Court the other day. Renter didn't demonstrate any interest in settling. So now its on to our virtual trial to be scheduled. I'll keep this group updated with developments.